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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;Note 9. Commitments and Contingencies&lt;/b&gt;
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;In the ordinary course of conducting business, our subsidiaries are involved in various legal
   proceedings, either indirectly as insurers for parties or directly as defendants. Most the these
   proceedings are claims litigation involving our subsidiaries as either (a)&amp;#160;liability insurers
   defending or providing indemnity for third party claims brought against insureds or (b)&amp;#160;insurers
   defending first party coverage claims brought against them. We account for such activity through
   the establishment of unpaid loss and loss adjustment reserves. Our management believes that the
   ultimate liability, if any, with respect to such ordinary-course claims litigation, after
   consideration of provisions made for potential losses and cost of defense, will not be material to
   our consolidated financial condition, results of operations, or cash flows.
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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;Our subsidiaries are also from time-to-time involved with other legal actions, some of which assert
   claims for substantial amounts. These actions include claims asserting extra contractual
   obligations, such as claims involving allegations of bad faith in the handling of claims or the
   underwriting of policies. In general, we believe we have valid defenses to these cases. Our
   management expects that the ultimate liability if any, with respect to future extra-contractual
   matters will not be material to our consolidated financial position. Nonetheless, given the large
   or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of
   litigation, an adverse outcome in such matters could, from time-to-time, have a material adverse
   outcome on our consolidated results of operations or cash flows in a particular fiscal quarter or
   year.
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 -Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
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